Credit Suisse Group reported net income of 3.2 billion Swiss francs for the second quarter. Income from continuing operations increased 70% from the same period a year earlier.

The firm posted net income of CHF 5.9 billion in the first half of 2007. Income from continuing operations increased 40% from the same period a year earlier. The return on equity amounted to 27.4% in the first half of 2007, up from 23.1% in the first half of 2006.

For the second quarter, the firm’s Investment Banking segment reported record income from continuing operations before taxes of CHF 2.5 billion, up 94% compared to the second quarter of 2006. Net revenues increased 70% to record levels, with substantial increases in all major business areas. Provisions for credit losses decreased compared to the second quarter of 2006.

The Private Banking segment, which is comprised of the Wealth Management and Corporate & Retail Banking businesses, reported income from continuing operations before taxes of CHF 1.4 billion for the second quarter of 2007, up 23% compared to the second quarter of 2006. The Wealth Management business reported record income from continuing operations before taxes, up 28% compared to the second quarter of 2006. Net revenues rose 17%, driven by strong improvements in recurring revenues, mainly due to higher asset-based commissions and fees, particularly from managed assets, as well as an increase in transaction-based revenues. The Corporate & Retail Banking business reported a 10% rise in income.

The Asset Management segment reported income from continuing operations before taxes of CHF 299 million for the second quarter of 2007, an increase of CHF 272 million compared to the second quarter of 2006. Net revenues increased 26% compared to the second quarter of 2006, driven by asset management and administrative revenues as well as by increased private equity and other investment-related gains.

The Wealth Management business generated net new assets of CHF 13.3 billion in the second quarter, representing an annualized quarterly growth rate of 6.5%. This was driven by particularly strong inflows from Europe and the Americas. The Asset Management business reported strong net new assets of CHF 20.4 billion in the quarter, mainly reflecting inflows from money market assets, alternative investments and balanced assets. Credit Suisse’s total assets under management were CHF 1,629.0 billion as of June 30, an increase of 5.0% from March 31, 2007.

Commenting on the quarter, Brady Dougan, chief executive officer of Credit Suisse, said, “The record operating results for the second quarter continue to build on the strong earnings momentum we have established over the past year. Revenues rose from both the previous quarter and a year earlier and benefited from our client-focused business model. Our focus on efficiency led to improved operating leverage, even as we continue to invest in the growth of our business.”

He added, “I am particularly pleased with our performance given the fact that we had more challenging conditions in some markets, which we expect to continue. However, I am very optimistic about the long-term growth prospects for Credit Suisse, and I believe that our client-focused, integrated business model and disciplined risk-taking will enable us to deliver superior value to shareholders through market cycles.”